China Pharma recently reported that revenue increased 18% to $19.6 million in the second quarter of 2010. Cash flow from operations was up by 10% to $3.6 million compared to the first six months of 2010. Net income from operations fell 9% to $4.8 million, compared to $5.3 million for the same three months in 2010. The company attributed the decline to lower gross margins on its products and a higher tax rate in 2011.
Commneting on the earnings, Ms. Zhilin Li, China Pharma's Chairman and CEO, said, “"In the second quarter of 2011 we achieved solid sales growth primarily due to strong performances by our Anti-Viro Infection & Respiratory and our CNS Cerebral and Cardio Vascular product categories. We continue to face pricing pressures across several of our product categories during the quarter, but we expect gross margin and revenue to benefit from anticipated launches of Candesartan and Rosuvasatin in the months ahead. In addition to the expected launch of these two higher margin products, we continue to advance our novel cephalosporin-based combination antibiotic through Phase II clinical trials. Commercializing exciting new drugs like this, along with first-to-market generic medicines, is an important part of our strategy to enhance China Pharma's growth and profitability.”
China Pharma, develops, manufactures and markets generic and branded pharmaceutical products for both western and traditional Chinese medicines in China. Its products are sold in 30 provinces, municipalities, and autonomous regions of China. Those products include Gastrodin, an injectable treatment for tiredness, loss of concentration, poor sleep, and traumatic syndromes of the brain; Cerebroprotein Hydroloysate Injection for the treatment of memory decline and attention deficit; Propylgallate to prevent and treat cerebral thrombosis, coronary heart disease, and thrombus deep phlebitis; and Alginic Sodium Diester injection for ischemic heart and cerebrovascular diseases. The company also offers generic forms of everyday drugs like naproxen sodium and pseudophedrine hydrochloride sustained release tablets to relieve cold, sinus and flu symptoms.
It has several promising drugs in the pipeline. In the first quarter of the year, China Pharma completed clinical trials of Candesartan, a front-line drug therapy for the treatment of hypertension. After successfully completing all testing procedures, the company is awaiting final regulatory production approval. At the end of 2010, the finished clinical trials of Rosuvastatin, a generic form of Crestor, a top selling cholesterol medication. China Pharma was also waiting on production approval for this drug. Phase II clinical trials of what the Company calls “its novel cephalosporin-based combination antibiotic” are ongoing.